One River Digital Asset Management, or ORDAM, a hedge fund specializing in cryptocurrencies, has been bought by US-based cryptocurrency exchange Coinbase.
One River Digital will become Coinbase Asset Management, “an autonomous firm and wholly-owned subsidiary” of the cryptocurrency exchange, according to a March 3 blog post by Coinbase. One River Digital has previously taken funding from Coinbase to expand its operations. One River Digital is a U.S. Securities and Exchange Commission-registered investment adviser.
“Coinbase and ORDAM share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil,” said Coinbase. “Culturally, our two organizations are strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness.”
One River Digital’s workforce would join the cryptocurrency exchange as part of the transaction, and Peters would continue to be the head of the renamed business. The conversation implied that there would be “little impact on ongoing business operations” throughout the shift.
The transaction announcement came after Coinbase led a wave of cryptocurrency companies to terminate relations with Silvergate after rumors the US Department of Justice was looking into the bank for its suspected role in the collapse of FTX. The cryptocurrency exchange previously said that Signature Bank will handle institutional client cash transactions for its top clients.